Trump OKs stiffer tariffs on Turkish metals as lira plummets

The euro has dropped today after the Turkish lira ad Russian rouble plummeted

Turkey is world's sixth-biggest steel producer, and eighth largest steel importer for the United States according to the International Trade Administration.

Investors fear Turkey is teetering on the edge of financial crisis following a dramatic plunge in its currency that has gathered pace this week.

On Friday, Turkey's currency, the Lira, fell as much as 14%, causing the global financial markets to shudder. Trump also threatened additional "large sanctions" against Turkey, a North Atlantic Treaty Organisation ally, for Brunson's detention.

Friday saw the lira's value falling over 15 percent, bringing the decline to over 40 percent since the beginning of the year.

Turkey's economic woes worsened after US President Donald Trump escalated a feud with Turkey by doubling tariffs on metals imports.

"This innocent man of faith should be released immediately", Trump previously wrote on Twitter when it became clear Turkey would not release the evangelist, who was ordered to be held under house arrest.

Financial upheaval there risks further destabilising an already volatile region. This will be my people's response to those who have waged an economic war against us'.

I hope we can soon get Pastor Brunson and other Americans released in a win-win fashion for both the USA and Turkey."Trump's move to double tariffs on Turkey was even praised by one of the president's most frequent Democratic critics".

Trump tweeted on Friday that he would be doubling existing tariffs on steel and aluminum imports from Turkey.

"If they have their dollar, we have the people, we have Allah", he said, as the lira continued to fall.

The latest tariffs stem from the trade fight Trump launched earlier this year with several countries, including Turkey, according to the Washington Post. He has denied the charges. Overnight it had retreated to its lowest since November 2016 on threats of new US sanctions, weakening beyond the psychologically important 65-per-dollar threshold. It fell yet further to 6.2 to the dollar at 1254 GMT, almost 12 percent weaker on the day.

Garanti and its local peers face a wave of corporate defaults and loan restructurings as the lira's collapse makes it harder for Turkish companies to repay the dollars they have borrowed in recent years. Turkish President Recep Tayyip Erdogan addressed supporters Friday in the provincial city of Bayburt.

The Turkish president took aim at the United States in his address, claiming "some countries have engaged in behaviour that protects coup plotters and knows no laws or justice". "Relations with countries who behave like this have reached a point beyond salvaging".

Turkey, home to the Incirlik air base which is used by U.S. forces in the Middle East, has been a North Atlantic Treaty Organisation member since the 1950s. It is host to an X-band radar, a critical part of the Western alliance's missile defence system again Iran. "The tweet is mightier than the Turkish sword", Cristian Maggio, head of emerging markets strategy at TD Securities, said in a note to clients, with reference to Trump's comments.

Erdogan framed Turkey's currency crisis as a "national battle" against economic enemies, namely the USA, saying "if they have their dollar, we have the people, we have Allah".

But analysts say that while there may be losses at banks, Turkey's economic problems do not pose a big threat to Europe or other big economies, like the United States.

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